Two pleasure boats crashed into each other yesterday in the shadow of the Statue of Liberty — leaving one man dead and another busted for boozing while operating his vessel with his three children aboard, cops said.

The tragedy unfolded in Upper New York Bay when a 30-foot Proline boat named “Reel Impulsive” smacked into a 17-foot Bayliner shortly after 6 p.m., authorities said.

“I was fishing, enjoying the beautiful weather, when I saw choppers in the sky and they were New York City police officers rescuing people from a boat collision,” said Angel Rivera, 49.

“It looked like two boats had gotten into a T-bone situation and one of the boats was cracked right in half.”

The three men aboard the smaller boat, all 30 years old, were brought to shore at Liberty State Park in Jersey City, cops said.

They were then rushed to Jersey City Medical Center, where victim Jijo Puthuvamkunnath died.

“He was one of the most kindest people you could ever meet,” said a family friend.

The others were in stable condition with head and knee cuts.

“The other guy must have been tossed around in the boat, because he had scrapes all over his face,” Rivera told The Post.

“When he went into the ambulance, he kept looking in the mirror at his face in shock.

“The other guy seemed to be the least injured of the three. He just had blood all over his shorts and a couple of scrapes and bruises.”

Richard Aquilone Jr., 39, the captain of the Proline, was arrested after failing a Breathalyzer test, sources said. Charges were pending last night.

The Jersey City businessman was aboard with a 35-year-old woman and his three children under the age of 3. No one on that craft was injured.

The US Park Police said the tourist boat called the “Shark” may have played a role in the deadly crash.

It passed the two boats and created a wake in the water that meant the larger vessel could not see the smaller one, US Park Police Sgt. Sal Norman told WCBS/Channel 2.